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Bibliographic Details
Main Authors: Richardson, Robert, Tolley, H. Dennis, Kuttler, Kenneth
Format: Preprint
Published: 2025
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Online Access:https://arxiv.org/abs/2508.03617
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author Richardson, Robert
Tolley, H. Dennis
Kuttler, Kenneth
author_facet Richardson, Robert
Tolley, H. Dennis
Kuttler, Kenneth
contents We develop a class of non-Gaussian translation processes that extend classical stochastic differential equations (SDEs) by prescribing arbitrary absolutely continuous marginal distributions. Our approach uses a copula-based transformation to flexibly model skewness, heavy tails, and other non-Gaussian features often observed in real data. We rigorously define the process, establish key probabilistic properties, and construct a corresponding diffusion model via stochastic calculus, including proofs of existence and uniqueness. A simplified approximation is introduced and analyzed, with error bounds derived from asymptotic expansions. Simulations demonstrate that both the full and simplified models recover target marginals with high accuracy. Examples using the Student's t, asymmetric Laplace, and Exponentialized Generalized Beta of the Second Kind (EGB2) distributions illustrate the flexibility and tractability of the framework.
format Preprint
id arxiv_https___arxiv_org_abs_2508_03617
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Expanding the Standard Diffusion Process to Specified Non-Gaussian Marginal Distributions
Richardson, Robert
Tolley, H. Dennis
Kuttler, Kenneth
Statistics Theory
We develop a class of non-Gaussian translation processes that extend classical stochastic differential equations (SDEs) by prescribing arbitrary absolutely continuous marginal distributions. Our approach uses a copula-based transformation to flexibly model skewness, heavy tails, and other non-Gaussian features often observed in real data. We rigorously define the process, establish key probabilistic properties, and construct a corresponding diffusion model via stochastic calculus, including proofs of existence and uniqueness. A simplified approximation is introduced and analyzed, with error bounds derived from asymptotic expansions. Simulations demonstrate that both the full and simplified models recover target marginals with high accuracy. Examples using the Student's t, asymmetric Laplace, and Exponentialized Generalized Beta of the Second Kind (EGB2) distributions illustrate the flexibility and tractability of the framework.
title Expanding the Standard Diffusion Process to Specified Non-Gaussian Marginal Distributions
topic Statistics Theory
url https://arxiv.org/abs/2508.03617